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33 Cards in this Set
- Front
- Back
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Describe 3 common features of currency |
1.MUST BE EASY TO CARRY 2.MUST LAST A LONG TIME 3.MUST BE MADE IN A STANDARD FORM & CONSIDERED LEGAL TENDER BY THE GOV'T THAT ISSUES IT |
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Name 2 weaknesses of the Articles of Confederation with regards to economics |
-THE LACK OF STANDARD CURRENCY -THEY COULDN'T TAX |
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Who has the power to print money under the U.S. constitution? |
THE GOVERNMENT |
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What is meant by the term "legal tender?" |
BY LAW, PEOPLE MUST ACCEPT THIS MONEY AS A PAYMENT FOR GOODS AND SERVICES IN THE UNITED STATES |
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Define the term "interest" |
THE UNPAID PORTION OF THE MONTHLY BILL |
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4 characteristics of money |
Portable; durable; divisibility; scarcity |
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2 components of money |
M1 money and m2 is all m1 money |
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3 functions of money |
Medium of exchange; medium of value; state of value |
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Bull market |
Stock prices are rising and people are buying stocks |
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Discount rate |
The minimum interest set by the federal reserve for lending to other banks |
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Bear market |
When people aren't buying. This usually happens when the NYSE drops 10% |
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On margin |
The purchase of an asset by paying the margin and borrowing the balance from a bank or broker |
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Number of disticts |
12 |
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Chairman of board |
Janet yellen |
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Federal reserve act was passed in what year |
1913 |
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Who signed the federal reserve act |
Woodrow wilson |
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Only FR bank who is a permanent member |
The one in new York |
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Arkansas's district |
8 |
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The federal reserve city of the 8th region |
St. Louis |
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When do people and businesses borrow more money |
When the interest rate is low |
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Law of demand |
States that buyers will demand or want a greater quantity of a good when its price is low |
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Law of supply |
States that businesses will produce more products when they can sell them at higher prices |
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Poorest economy |
Traditional |
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Communist countries practice |
Command economy |
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TINSTAAFL |
There is no such thing as a free lunch |
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Human resource |
The education, experience, and abilities of employment |
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Capital resource |
Man made products used to make products |
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Natural resource |
A natural/material wealth such as timber and fresh water |
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IOU's |
Security's |
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Yield |
Interest paid |
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Gross pay |
Money before deductions |
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Net pay |
Money after deductions |
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4 withholding taxes from a person's gross pay |
Fed, state, social security/retirement, insurance, medicare ins. |
